stevehickey I was curious, because I have had children in daycare full time and still have children in a home daycare after school hours, what would happen if the minimum wage allowed for one more child to go to his daycare?
@stevehickey20 AugThe proposed minimum wage increase in SD means $2965/yr added to my $454,481/yr daycare biz payroll. Curious how it would affect your biz.
Michael Larson His response:
@LarsonTizzle20 Aug @stevehickey How much more would you make now that one more parent maybe able to send his/her child to your daycare?
stevehickey I think that make a pretty good case right there that "people at minimum wage can't afford daycare, period." that we should raise the minimum wage so that maybe they could afford daycare. Except for the fact that many parents, if they work, have to figure out some kind of daycare for their children. Most daycares charge about $125 a week for one child. If he could get one more child enrolled to his daycare, that would mean an extra $6,250. But he has a waiting list and can't afford to expand. I understand that $2,965 is a significant amount of money. It is nothing to sneeze at when you are a teacher, but if I was a math teacher I would have figured this out earlier.
@stevehickey21 Aug @LarsonTizzle ?no more . People at minimum wage can't afford daycare, period. We have a waiting list as is. May raise prices though.
His business payroll is $454,481 a year. By his words, this is payroll and not other expenses. The additional cost in payroll will be $2,965. This means that his payroll cost will only go up .65% That is a decimal point in from of that number 6 there. His costs will go up less than 1%. I guess that if you work for the daycare, you better not expect a raise anytime soon. He also is short sighted and doesn't see how this might actually increase productivity and workers may be willing to stay longer.
Then I also did the math on the price increase he would have to charge the people that send their children. A staff payroll of $454,481 means that he probably has a significant amount of children at his daycare. I don't know the exact number, but lets play it very safe and say 60 children. If he charges an extra dollar (THAT IS 1 DOLLAR) a week for the child, he would make $3000 and cover the extra cost.
To sum up Mr. Hickey's argument for the minimum wage. His more than $500,000 business may see payroll cost increase less than 1%. If he choose to pass that cost onto his customer, they would see a .66% increase in the price of send his or her child to what I am sure is an excellent daycare. I think that provides an excellent case for increasing the minimum wage.